The Chair of the Arizona Corporation Commission Susan Bitter Smith is stepping down from her post. Thursday’s announcement comes after the state attorney general called for her removal earlier this month on the grounds she has violated conflict of interest laws.
Bitter Smith still contends that her ties to the telecom and broadband industries do not conflict with her regulatory responsibilities, but the ongoing scrutiny has made it too difficult to devote her full attention to her work.
“The continued media attention to all of this issue is creating great distraction, and from that distraction the ability to do the job at the commission and at the cable association has been impeded," she said.
Bitter Smith had been under fire since August when KJZZ first reported on a possible conflict and local attorney Tom Ryan filed a complaint with the attorney general, citing her status as director of a cable industry trade group, the Southwest Cable Communications Association, and as a registered lobbyist for Cox. While the commission does not regulate cable or internet, it does oversee the telephone affiliates of some cable companies in her association.
After an extensive investigation, Attorney General Mark Brnovich concluded that Bitter Smith had violated the conflict of interest laws that apply to commissioners, which prohibit them from holding an official relation to or monetary interest in the entities they regulate.
Bitter Smith's resignation, which will take effect the beginning of January, comes after her attorney filed a response late Wednesday night refuting the attorney general's arguments.
Despite her decision to step down, Bitter Smith said she would like the high court to go forward with the case.
"The AG takes the view that any company loosely affiliated with a regulated telephone entity is subject to the Commission’s jurisdiction," said Bitter Smith. "Using that theory, if a company has one regulated entity, then all of its entities are subject to regulation. So, for example, Berkshire Hathaway which owns the Burlington Northern Rail Road, a regulated company for railroad crossing issues, under the AG’s theory, would then find all of its other subsidiaries such as Dairy Queen, BenBridge Jewelers, See’s Candies, Fruit of the Loom, World Book Encyclopedia, and many others subject to our regulation."
Bitter Smith also implied that she has been a target of outside groups attempting to undermine the commission.
"That is why it is so concerning that the action by the AG, reacting to a dark money group’s continued attack on the entire Commission, continues to create distractions from the important work of the Commission," she said.
The Checks and Balances Project, a Washington D.C. based watchdog group funded by clean energy interests, has been engaged in a high-profile fight over the text message records of Commissioner Bob Stump involving alleged campaign contributions.
Gov. Doug Ducey will appoint a replacement to serve out the last year of Bitter Smith's term.
Ducey spokesperson Daniel Scarpinato issued a statement after Bitter Smith's announcement: “This is an important position, and Governor Ducey will take a thoughtful approach to filling this vacancy.”
The attorney general has previously said that there is an open criminal case related to Bitter Smith, but has not elaborated.
Earlier this month, KJZZ also reported on Bitter Smith's involvement in state broadband and telecom policy while running for the commission and after taking office.
Updated 12/17/2015 at 5:50 p.m.
Complete Coverage
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- Arizona AG Calls For Removal Of Corporation Commissioner Susan Bitter Smith
- Arizona Utility Regulator's Business Ties Called Into Question
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- Attorney Files Complaint Against Arizona Corporation Commissioner Susan Bitter Smith
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- Arizona Utility Regulator Susan Bitter Smith Faces Another Complaint
- Attorney Calls For Removal Of Arizona Corporation Commission Chair Susan Bitter Smith
